Monday, 23 September 2019

Negative Interest Rates, Looking Deeper................from Rico

Watching the Monetary phenomena of negative interest rates (aka NIRP) elsewhere in Western civilization, be mindful that the US is only a small step removed from them itself. [Gee, thanks a bunch FED]
 
WHY would anyone 'sell' their money [think: bonds, savings] at a guaranteed loss?
- Why lend $1.00 to only get back $0.90?
- Well...IF the alternative is to get back only $0.80 or even LESS, then 'locking-in a loss' makes some sense.
 
Looking at it in terms of huMAN natURE, the duality of man so to speak, NIRP also encapsulates the Austrian economic view vs. the Marxist economic view...skipping the polemics, consider that:
- Civilization = production and accumulation in excess of consumption.
- De-civilization = spending, borrowing, and consuming more than is produced or has been accumulated.
 
We are witness to the economic barbarism that precedes the Fall & Decline of civilizations...



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